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Is there a difference between being self-employed and working freelance?

17 replies

discophile · 12/05/2014 11:44

Just that really. Can anyone explain very simply if there is a difference between being self-employed and working as a freelance?

Am I right in thinking that IN BOTH cases one would need to put a UTR on the invoice for work done?

OP posts:
EvaTheOptimist · 12/05/2014 11:45

No, no difference, same thing.

I don't think you need to put your UTR on your invoices though.

But you do need to be registered self-employed and do your own tax returns.

discophile · 12/05/2014 12:22

Oh dear. Your answer is the opposite to what I thought/what I've been told. Another call to HMRC... :-(

OP posts:
discophile · 12/05/2014 12:31

Well, I have rung HMRC and the representative said that anyone who does self-assessment needs a UTR number and needs to put their UTR number on their invoice.

OP posts:
EvaTheOptimist · 12/05/2014 12:35

I stand corrected! I have never put my UTR on my invoices but perhaps I work in a forgiving sector where no-one cares for the regulations

NigelMolesworth · 12/05/2014 12:40

Oh, goodness, I am self-employed in a freelance capacity and it wouldn't even occur to me to put my UTR on any invoice... I always assumed for security purposes that's one of those little bits of info better kept confidential. How odd.

Picturesinthefirelight · 12/05/2014 12:42

You have to put your UTR & NI number if you work in the construction industry

But not to my knowledge in any other industries.

NigelMolesworth · 12/05/2014 12:44

Aaah that makes more sense, I work in an airy fairy creative type industry!

Picturesinthefirelight · 12/05/2014 12:45

So do I! Performing arts.

But I also work pt in payroll accounts for a constrict ion firm.

TalkinPeace · 12/05/2014 20:31

I have never EVER put my UTR on an invoice.

BUT
If you are expecting payment without deduction of tax, the contractor (any industry) should ask for proof that you are properly self employed, not working cash in hand.

Picturesinthefirelight · 12/05/2014 21:13

To be absolutely correct - in the construction industry you don't have to put your UTR on the actual invoice but you do have to provide it in some form to the company you are working for.

As a limited company we have a typed letter head with name if company UTR & company reg we send out with our first invoice. (For non limited companies you use your NI number instead).

However many companies put the info on their invoice automatically as its easy to forget otherwise.

whatdoesittake48 · 13/05/2014 14:39

This is news to me too...

TalkinPeace · 13/05/2014 17:57

Picturesinthefirelight
I've been a qualified accountant for 20 years. What you have written is uttrly incorrect

Have never and will never put the UTR of the company on any invoice.
And I never see any of my suppliers (Jewson, Staples, John Lewis) doing it.

Have never and will never put NI numbers on sole trader invoices.
Crass breach of data protection guidance.

CIS rules are very different from other trades
and the NI / CIS details go on the CIS payment certs, NOT the invoices.

Picturesinthefirelight · 13/05/2014 18:24

I didn't say they 'have' to go on invoices. Just that many people prefer to do that as a matter of course so the details are to hand for online verification & I also clearly stated it was construction industry only.

Payment certificates are only sent out by the main contractor to subcontractors who don't have gross status. The subcontractor firstly has to provide these details in writing to the main contractor.

How those details are sent to me - I don't care- one man bands tend to put it on their invoice.

When we sub to a larger firm we never put them in our invoice.

Picturesinthefirelight · 13/05/2014 18:26

As the OP didn't state what industry they were in I mentioned construction in car that's why hmrc told them that.

Picturesinthefirelight · 13/05/2014 18:28

Picturesinthefirelight Mon 12-May-14 12:42:25
You have to put your UTR & NI number if you work in the construction industry

But not to my knowledge in any other industries.

Picturesinthefirelight Mon 12-May-14 21:13:56
To be absolutely correct - in the construction industry you don't have to put your UTR on the actual invoice but you do have to provide it in some form to the company you are working for.

That's what I said.

TalkinPeace · 13/05/2014 18:48

I've been doing CIS since the days of 64-8 and 714

UTRs are NOT required on invoices. Nor are NI numbers.
They just need to be provided to the contractor

BUT
the CIS industry is unlike the rest of the SA industry

Picturesinthefirelight · 13/05/2014 18:51

That's what I said Talkinpeace

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